Hello all, I apologize if this was answered before but I need to know what to expect from the tax end of my new business. First let me give you the setup. I am forming an S-Corp or LLC (still don't know what's best) with a partner. The two of us are hiring people to clean homes in the 25 mile radius of where we live. The employees will be 6-10. That's it. Very simple. The problem is I don't know (afraid to screw myself at the end of the year) how to approach the tax aspect.
Simply If we make 80,000 a year, that would go into the business account via credit card transactions/payments. How much is a wise % to keep in the busines account. Keep in mind that this is before taxes.
35% of the payments are going to the staff (28,000)
65% to us (52,000) (26,000 to me and 26,000 to my partner)
I am really unclear as to how to do this. Do we just pay the 26,000 straight up to ourselves through payroll checks over the course of the weeks? and if so is there anything that would be taxed or fees against the business at the end of the year? Because if we live check to check through the payroll system while leaving nothing in the business account, will we be royally screwed come April of 2010?
